United Airlines Holdings Inc. (NASDAQ:UAL) stock fell in premarket trading Thursday after the carrier warned that higher fuel costs and capacity constraints are expected to weigh on near-term results, even as it reported second-quarter earnings and revenue above Wall Street estimates.
Earnings Top Estimates
United reported second-quarter revenue of $17.67 billion, topping the analyst consensus estimate of $17.62 billion, according to Benzinga Pro. Adjusted earnings came in at $1.99 per share, ahead of expectations of $1.87 per share.
Second-quarter capacity increased 3.5% year over year. Cost per available seat mile (CASM) rose 15.2%, while CASM excluding fuel (CASM-ex) increased 6.1%.
The airline said its average fuel price was $4.19 per gallon during the quarter. Since early July, fuel costs have increased by another $575 million, which the company said will reduce third-quarter adjusted earnings by about $1.12 per share.
